Leadership competency inventory: A systematic process of developing and validating a leadership competency scale

This article reports psychometric evaluation of the Penn State Leadership Competency Inventory (LCI). The 32‐item LCI was validated on a sample of 323 managers in the health care industry. Preliminary validity and reliability evidence of the LCI was established through exploratory factor analysis (EFA), item‐total correlations, Cronbach's alpha coefficients, and confirmatory factor analysis (CFA). The four‐factor leadership competency scale, comprising supervisory and managerial competencies, organizational leadership, personal mastery, and resource leadership, accounted for 58% of variance. According to CFA results, the model fit of the four latent factors of the LCI was confirmed to be appropriate. Cross‐validation with other populations is needed to confirm the factor structure. Limitations and further research recommendations are discussed.     

Signaling, investment opportunities, and dividend announcements

This article examines potential explanations for the wealtheffects surrounding dividend change announcements. We find thatnew information concerning managers' investment policies isnot revealed at the time of the dividend announcement. We alsofind that dividend increases (decreases) are associated withsubsequent significant increases (decreases) in capital expendituresover the three years following the dividend change, and thatdividend change announcements are associated with revisionsin analysts' forecasts of current earnings. These results areconsistent with the cash flow signaling hypothesis rather thanthe free cash flow hypothesis as an explanation for the observedstock price reactions to dividend change announcements.     

Interdependence in the technology adoption decision among municipalities

This study examines the interdependence among municipalities in the discrete decision to adopt internet technology. Results from probit specifications with interaction effects suggest that cities are influenced by nearby neighbours with similar population size in developing a website. Evidence is also presented indicating interaction among municipalities in the decision to use internet technology to facilitate financial transactions.     

Structuring technological information for technology roadmapping: data mining approach

Most research on technology roadmapping has focused on its practical applications and the development of methods to enhance its operational process. Thus, despite a demand for well-supported, systematic information, little attention has been paid to how/which information can be utilised in technology roadmapping. Therefore, this paper aims at proposing a methodology to structure technological information in order to facilitate the process. To this end, eight methods are suggested to provide useful information for technology roadmapping: summary, information extraction, clustering, mapping, navigation, linking, indicators and comparison. This research identifies the characteristics of significant data that can potentially be used in roadmapping, and presents an approach to extracting important information from such raw data through various data mining techniques including text mining, multi-dimensional scaling and K-means clustering. In addition, this paper explains how this approach can be applied in each step of roadmapping. The proposed approach is applied to develop a roadmap of radio-frequency identification (RFID) technology to illustrate the process practically.     

Sources of Fluctuations in the Real Exchange Rates and Trade Balances of the G‐7: A Sign Restriction VAR Approach

This paper estimates structural vector autoregression models of output, the real exchange rate and trade balance for the group of seven leading advanced economies (G‐7). Unlike previous studies, we do not impose long‐run purchasing power parity as an identifying assumption; instead, the shocks underlying the model are structurally identified using a set of theory‐consistent sign restrictions. Empirical results show that nominal shocks account for most of the long‐run variability in trade balances across the G‐7 countries. We are able to attribute this finding to long‐run movements in the real exchange rate, as the real exchange rate is significantly affected by nominal shocks in the long run.     

Evaluating Industrial Relations Systems of OECD Countries from 1993 to 2005: A Two‐Dimensional Approach

This article uses both cross‐sectional and longitudinal methods to evaluate the national industrial relations systems of 30 Organisation for Economic Co‐operation and Development (OECD) countries from 1993 to 2005. We adopt a pluralistic view of industrial relations that gives equal weight to efficiency and equity, along with a general systems model consisting of input, process and output. We rank each country in terms of a combined score of efficiency and equity. We find that the 30 OECD countries can be separated into three distinct groups (high on both equity and efficiency; high on efficiency but low on equity; moderate on equity and low on efficiency), and that these groups exhibit considerable stability over time.     

Insider ownership and signals: evidence from stock split announcement effects

This study examines whether investors regard the level of insider ownership of a firm as useful for evaluating stock split decisions. Results show that the abnormal returns at the announcement of stock splits are positively related to the level of insider ownership. The results prevail even after controlling for other relevant factors. Further analysis indicates the positive relation exists for small firms, but not for large firms. This indicates the market evaluates stock split decisions within the context of both insider ownership and information asymmetry.     

Macroeconomic risk and the cross-section of stock returns

We develop a conditional version of the consumption capital asset pricing model (CCAPM) using the conditioning variable from the cointegrating relation among macroeconomic variables (dividend yield, term spread, default spread, and short-term interest rate). Our conditioning variable has a strong power to predict market excess returns in the presence of competing predictive variables. In addition, our conditional CCAPM performs approximately as well as Fama and French’s (1993) three-factor model in explaining the cross-section of the Fama and French 25 size and book-to-market sorted portfolios. Our specification shows that value stocks are riskier than growth stocks in bad times, supporting the risk-based story.     

ESTIMATING A DYNAMIC SPATIAL EQUILIBRIUM MODEL TO EVALUATE THE WELFARE IMPLICATIONS OF REGIONAL ADJUSTMENT PROCESSES: THE DECLINE OF THE RUST BELT

This article develops and estimates a new dynamic spatial equilibrium model to study the regional transition dynamics and its impact on individual and aggregate welfare. The model consists of a multiregion, multisector economy comprised of overlapping generations of individuals with heterogeneous skills and mobility costs. The empirical findings suggest that a large fraction of the decline of the Rust Belt can be attributed to the reduction in its region‐specific comparative advantage in the goods‐producing sector. This decline generated significant differences in welfare across regions. Policy experiments show that such inequality can be significantly reduced through place‐based policies.